Insta-chèques – Quebec Court of Appeal finds that a company in a cheque-cashing business was a listed financial institution under the ETA

A Quebec company whose business was to cash cheques was found to be a financial institution under ETA s. 149(1)(a)(iii), namely, a person “whose principal business is as a … dealer in … financial instruments.” This meant that it was subject to Part IV.1 tax under the Taxation Act.

The principal issue was whether the company was a “dealer.” The Court stated:

[T]he author Simon Labrecque properly states that the term “dealer” … relates to a person “whose business consists of dealing in financial instruments for its own account…” where this is for the purpose of profit. This entails, according to him, “an elevated level of transactions, in volume and frequency.”

Neal Armstrong. Summary of 2441-0946 Québec Inc. (c.b.a., Insta-chèques) v. Agence du revenu du Québec, 2017 QCCA 1491 under ETA s. 149(1)(a)(iii) and s. 123(1) – debt security.